Environmental performance... an urgent challenge

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Environmental performance… an urgent challenge DNV Serving the maritime industry

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Although marine transportation is quite energy efficient in terms of ton/mile performance compared to other transportation alternatives, shipping is now facing a new reality: media, politicians and the public at large are increasingly focusing on environmental issues.

Transcript of Environmental performance... an urgent challenge

Page 1: Environmental performance... an urgent challenge

Environmental performance… an urgent challenge

DNV Serving the maritime industry

Page 2: Environmental performance... an urgent challenge

There is increasing evidence that human activities are con-

tributing to global warming and rapid climatic changes.

Although marine transportation is quite energy efficient in

terms of ton/mile performance compared to other trans-

portation alternatives, shipping is now facing a new reality:

media, politicians and the public at large are increasingly

focusing on environmental issues. Carbon emissions which

contribute to global warming are particularly in the spot-

light. Action is being demanded and companies’ corporate

social responsibility is being challenged.

Ambitious emission reduction targets are currently being

discussed and agreed in international and regional forums.

There is little doubt that rules and regulations covering

environmental issues will become more and more strict in

the years ahead.

Vessels ordered today may still be in operation beyond

2040. What should we in the shipping industry do to pre-

pare for this new reality? Rather than just waiting for new

regulations to come into force we in DNV believe a proac-

tive approach is the best alternative: looking for opportuni-

ties, continuously developing and implementing effective

and practical alternatives and working with regulators to

influence regulation with real-world knowledge and experi-

ence. In many cases future-oriented solutions have eco-

Environmental Performance…

An Urgent Challenge

Tor E. Svensen

Chief Operating Officer, DNV Maritime

2 Challenges Discharges to sea Hazardous materialEnergy Efficiency

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CHALLENGES

There is little doubt that rules andregulations covering environmentalissues will become more and morestrict in the years ahead

“ “

Commitment and cooperation 3

nomic incentives continuously strive towards our own

potential for improvements rather than claiming that we in

shipping are the champions.

Environmental issues are top priority for DNV. Our vision

is “Global impact for a safe and sustainable future.” We are

already serving the industry extensively within this field,

and we are spending considerable resources to develop

state-of-the-art competence and services. These include

classification and verification activities, R&D and technolo-

gy development, concept evaluation and development,

advisory services and training.

Times of change are often times of opportunities.

Identifying and implementing environmental improve-

ments for shorter and longer term gains and positioning

may very well produce good return on investment.

Investment in our own future.

We are pleased to serve the shipping industry with a wide

range of environmental services and contribute to sustain-

able development that benefits all of us. Let us see how we

can support you in developing your competitive edge.

The first movers may very well be the winners!

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There are many reasonsfor reducing air-borne emissions

4 Challenges Discharges to sea Hazardous materialEnergy Efficiency

The human impact on global climate is increasingly evident. With that, initiatives to reduce emissions

with a high greenhouse gas potential; in particular CO2, are becoming more and more urgent and

important. Many nations have set ambitious emission reduction targets to be reached before 2020. Most

likely these will impact international shipping. As fuel prices increase, a reduction in fuel consumption

will not only have a positive impact on the emitted greenhouse gases to air, but will also help to reduce

the operational costs of a vessel. Effective energy management, as well as setting emission targets and

implementing technical and operational solutions, is the key to success.

The shipping industry should preparefor reduction of CO2, NOx, SOx andparticulate matter (PM) from engines

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REDUCING FUEL CONSUMPTION

For vessels yet to be built, the improvement opportunities

are substantial, e.g. the choice of fuel or energy supply,

with possible solutions including LNG, 2nd generation bio

fuels, fuel cells, wind-, solar- and wave power, or nuclear

power, and making use of cold ironing--shore-side electrical

power sources in port. Through further optimized hull

and propulsion designs, as well as optimization of engines

and monitoring systems, emissions from main engines

and auxiliary engines can be significantly reduced. Minor

energy consumers, like deck paint, pipe insulation and air

conditioning systems can have a reduced impact with

improved technology.

Bunker fuel represents the highest cost element for sea

transport, and may account for 50 – 70% of total opera-

tional expenses, hence even small improvements will have

a positive impact on the bottom line. Some main areas with

potential for improvement of a vessel’s energy efficiency

performance include:

REDUCING SOX EMISSIONS

One of the major shipping-related emissions to air is SOx

(collective name for sulphur oxides), causing acidification

and smog, resulting from burning of sulphur-containing

fuel. The implementation of Sulphur Emission Control

Areas (SECA) restricts the sulphur content in the fuel oil

severely, meaning that a change to low-sulphur fuel oil,

changing to another fuel, or eliminating SOx from the

exhausts, is a ticket to trade.

SOx emissions can be almost eliminated (>99%) from the

exhaust gas through the use of a scrubber (fresh water or

sea water) in which SOx will be absorbed and washed down

to the seawater, making use of the natural buffer capacity

of the ocean. In addition, new principles for SOx scrubbers

are now under development. Implementing a scrubber

includes an additional fuel penalty in the range 1.5 – 3%,

and of course there will be a capital cost for a retrofitting.

In sensitive waters, or in harbours with little net inflow, it is

expected that requirements will be introduced with regard

to handling of the wash water and the cleanliness of the

effluent water. It may therefore still be necessary to switch

to low sulphur fuel alternatives in certain areas.

REDUCING NOX EMISSONS

NOx (collective name for nitrogen oxides) is the result of

the combustion of fuel in contact with an excess of ambi-

ent air. NOx causes smog, acidification and eutrophication-

-the over-growth and consequent oxygen deficiency, result-

ing from too many nutrients in a water habitat. MARPOL

as well as the US EPA are setting increasingly strict require-

ments on NOx performance for vessel engines, and

Norway, with other nations possibly to follow, has recently

implemented a nationwide NOx tax per kg NOx emitted.

For shipowners under the Norwegian NOx tax, a pre-set

NOx emission value depending on vessel engine(s) size will

constitute the prime preference for the bill to be paid.

Being able to prove the actual NOx emissions and finding

ways of reducing those is essential. An efficient and accu-

rate monitoring and reporting system is vitally important

and can enable a shipowner to significantly reduce NOx-

related costs.

One feasible solution to reducing the NOx emissions is

Selective Catalytic Reduction (SCR) which reduces the

NOx conversion into nitrogen gas and water vapour

through the use of ammonia or urea. The reduction poten-

tial is around 85- 99%, and can significantly reduce the par-

ticulate matters as well. So called “wet solutions” that are

using water vapour or injection of water emulsions into the

engine prove a reduction potential of some 30–70%.

Knowing which technology is best suited for a particular

application, will be crucial for an efficient result in NOx

reduction.

ENERGYEFFICIENCY

5Commitment and cooperation

BEING BRIEFThe exhaust emissions from burning of fuel are affecting

the global climate in addition to causing environmental

impacts like acidification, overgrowth and smog.

Emissions can be significantly reduced through the use of

more efficient design and technology, more careful energy

management as well as the implementation of feasible

emission reduction technologies.

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Discharges to sea – increasingly important

BALLAST WATER

The environmental and economic consequences of the

introduction of alien species from de-ballasting operations

are already evident today. This is now considered one of

the four greatest threats to the World’s oceans. In 2004, the

Ballast Water Convention was approved, requiring that all

ocean going vessels need to have a Ballast Water

Management System implemented onboard no later than

2016.

For a ship owner, it is crucial to be prepared to install an

approved Ballast Water Management System before this

date. As the applicability of different ballast treatment sys-

tems will vary with vessel type, performing a technical feasi-

bility study is time and money well spent. Typical issues to

evaluate are footprint, back pressure, location flexibility,

ease of implementation and maintenance needs.

For some trades, new solutions such as catamaran or trimaran

designs can be feasible options which would significantly

reduce or eliminate the need for ballast tanks and hence

lessen the energy consumption while eliminating the need to

implement ballast water treatment systems onboard.

WASTE WATER

For waste water, the international restrictions on waste

water management are tightening. In some local jurisdic-

tions, even tighter restrictions have been defined. Within

12nm from shore, all black water is to be treated by an

advanced wastewater treatment system before discharge,

otherwise the ship must rely on its holding capacity.

Consequently, shipowners have to either invest in new cost-

ly waste water technology or adapt their operation to their

black water holding capacity. An optimized waste water sys-

tem and waste water management plan for these ships will

immediately increase their sailing flexibility.

6 Challenges Discharges to sea Hazardous materialEnergy Efficiency

Accidental discharges, as well as operational discharges of oil have continuously decreased over the

last decades. International and national regulations, incentives and policies as well as environmental

fines and law-suits have forced the shipping industry to reduce any oil discharges to sea significantly.

Today, the shipping industry needs to deal with yet other discharge regulations. Discharge of ballast

water is maybe one of the most challenging.

BEING BRIEFThe challenges with discharges to sea have somewhat

shifted from operational and accidental discharges of oil,

to treatment of ballast water and waste water streams.

There are more and more ballast treatment technologies

to choose from, and a careful feasibility study is a sound

investment. Regulations on waste water streams are

becoming more and strict, and efficient waste water

treatment systems are a necessity.

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DISCHARGESTOSEA

Waste – an inevitablecost or a potential resource?

With the world fleet increasing, the amount of ship-gener-

ated solid waste is increasing as well. With each ship pro-

ducing several hundred kilos of oily sludge and significant

amounts of solid waste daily, proper onboard and portside

waste facilities are needed.

Good onboard waste management starts with a viable

garbage management plan. A cleaner and tidier ship can

be achieved by minimizing the amounts of waste brought

onboard, adequate waste sorting procedures that match

shore-side sorting codes, optimal burning with heat recov-

ery, and proper segregation of non-reusable waste frac-

tions and good operational routines.

In the near future, systems for recovering more energy

from the garbage may be seen not only onboard, but also

in main ports as a significant source of energy. Gasification

is one such technology. In ports, such power plants may be

supplying ships with additional energy through cold iron-

ing systems, or offer electricity commercially to local shore

side facilities.

Through an updated total waste management system a

fleet can reduce operational costs and avoid unpleasant

surprises. Proper focus on garbage handling onboard may

also reduce the waste volumes and hence lower the bur-

den on garbage treatment systems and possibly reduce the

shore-side discharge fees significantly.

Finally, by integrating the different waste treatment sys-

tems properly and ensuring that all side-streams and

residues get properly handled, the overall waste manage-

ment system becomes more robust and is easier to main-

tain in a good working manner.

7Commitment and cooperation

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8 Challenges Discharges to sea Hazardous materialEnergy Efficiency

A vessel’s last voyage – with anInventory of Hazardous Material

The life of a vessel ends at a scrapping site - or rather, recycling yard. With few

requirements and procedures in place, deconstruction of a vessel is complicated, hard

work, often resulting in severe workplace accidents and health- and environmental

incidents. A shipowner that is not responsibly scrapping vessels might lose his reputa-

tion in the industry.

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9Commitment and cooperation

HAZARDOUSMATERIAL

To ease the work of deconstruction and aid in the opportu-

nities for recycling of material, the Green Passport docu-

ment – recently re-named Inventory of Hazardous

Materials - has been created. The Inventory of Hazardous

Materials quantifies and locates the hazardous material in

existence on the vessel.

As an example of hazardous materials built into the struc-

ture of a vessel, asbestos is identified and found onboard

most vessels today, with most significant occurrences on ves-

sels built before mid-eighties. It seems that asbestos materi-

al continues to be used regularly during repair, regardless

of asbestos bans; hence an asbestos free certificate is no

warranty. Some charterers include asbestos free as part of

their charter party requirements, with possible significant

off-hire costs if asbestos is found onboard.

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10 Challenges Discharges to sea Hazardous materialEnergy Efficiency

Commitmentand cooperation

For the shipping industry to have a chance at achieving

their part of the ambitious reduction targets for 2020, all

parties need to do their share. Key stakeholders in the

industry need to show concerted efforts in improving the

environmental footprint, supporting a global IMO-based

regulatory regime as well as intensifying research into alter-

native energy sources.

The logistics chain can be greatly improved, but will imply

closer cooperation between cargo owners, charterers and

ship owners in order to achieve any promising results. Such

proactive cooperation could result in improvements such as:

� larger ships with higher utilization� enhanced routing through optimization of the logistics chain

� fewer ballast voyages� larger cargo batches� optimized arrival times

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11Commitment and cooperation

COMMITMENTANDCOOPERATION

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